Implementing Transit-Oriented Development- an International Perspective UMI 2017- Hyderabad
URBANIZATION THE CONTEXT
SHIFT TO AN URBANIZED WORLD 75% in 2050 50% in 2000 30% in 1950 14% in 1900 3% in 1800
THE EXTRAORDINARY URBANIZATION CHALLENGE Globally, 800 million per decade India s urban population will double to 800 million by 2050 Source: UN Habitat; UN World Urbanization Prospects 2014 Revision; Image: Harvey Barrison
2015-2030 unprecedented urban growth especially in S. Asia & Africa
Medium-sized cities will grow the most Note: N = 1,692 urban agglomerations (populations 300,000 inhabitants). Sources: United Nations (2014); World Bank country classification.
More of the poor will live in cities Source: Ravallion et al., 2007c: 8. Note: Example trend based on data from India.
Urbanization will NOT be accompanied by economic growth everywhere
DRASTIC CHANGES IN CITIES Globally, urban infrastructure will more than DOUBLE in the next 15 years Photo: Flickr/RICO Lee
The fastest-growing cities will have the least public resources Source: Authors compilation from various sources. Note: Budget data represent years 2010 to 2016.
Urban Expansion in Indian Cities DISTANT DISCONNECTED DISPERSED Delhi NCR Mumbai Pune 54 sqkm/ year 5 sqkm/ year 42 sqkm/year Municipal Boundary Urban Area (2005-06) Urban Area (2011-12) Rapid growth in satellite towns of Delhi (Gurgaon, Noida, Grt Noida, Faridabad etc) Mumbai, little movement in peripheries, but witnessing inner city redevelopment Pune capitalising on Mumbai s slow down, attracting new economies like IT/ ITES Source: Generated by WRI India using data from Bhuvan NRSC
High Cost of Sprawl Image Source: Smart Prosperity Institute. Copyright provided.
Additional Costs of Urban Sprawl 13
Impact on the Urban Poor Urban Sprawl and automobiledependency have a number of adverse effects on the urban poor: Sprawling cities remain largely inaccessible to the urban poor Urban poor are often concentrated on periphery of city, sometimes in informal settlements Difficult to access economic opportunities located in city center Image Source: Travis S. Mexico City Aerial. Photograph. Flickr. December 18, 2008. Accessed November 15, 2016. https://www.flickr.com/photos/baggis/3179149748/sizes/l.
URBAN SPRAWL IS COSTLY Image: Flickr/Jeff Turner; Source: The New Climate Economy
GLOBAL CLIMATE CHANGE TARGETS ARE NOT POSSIBLE WITHOUT THE TRANSFORMATION OF CITIES 23% of global GHG emissions are from transport 70% of GHG emissions come from cities 16
THIS? Image: Flickr/RodrigoSolon
OR THIS? Image: Flikr/Andreas
BACKGROUND POINT OF DEPARTURE
HOW WE BUILD CITIES MATTERS ATLANTA BARCELONA Atlanta s built-up area Population: 2.5 million Urban area: 4,280 km 2 Transport carbon emissions: 7.5 tonnes CO 2 per person Population: 2.8 million Urban area: 162 km 2 Transport carbon emissions: 0.7 tonnes CO 2 per person Source: Bertaud and Richardson, 2004, Kenworthy (2003) citied in Lefevre, B. (2009)
HOW WE BUILD CITIES MATTERS ATLANTA BARCELONA Atlanta s built-up area Population: 2.5 million Urban area: 4,280 km 2 Transport carbon emissions: 7.5 tonnes CO 2 per person Population: 2.8 million Urban area: 162 km 2 Transport carbon emissions: 0.7 tonnes CO 2 per person Source: Bertaud and Richardson, 2004, Kenworthy (2003) citied in Lefevre, B. (2009)
A NEW URBAN PARADIGM: COMPACT, CONNECTED, COORDINATED AND RESILIENT $3 trillion savings on infrastructure 2015-2030 6% in GDP savings in cities Source: New Climate Economy; Image: Flickr/Chris Wilkinson
COMPACT CITIES HAVE FASTER GROWING ECONOMIES Source: IIHS,2011,h\p://iihs.co.in/wp-content/uploads/2013/12/IUC-Book.pdf
STRATEGY TRANSIT-ORIENTED DEVELOPMENT (TOD)
TRANSIT-ORIENTED DEVELOPMENT (TOD) Walkable: Proper integration of non-motorized modes of transit Mixed-use: Planned mix of commercial and residential buildings Mixed-income: Inclusive TOD through affordable housing High-density: More housing units near transit stations to increase transit ridership Access to Mass Transit: Residents must have access to reliable transit Access to Opportunities: Jobs, services, housing, recreation, public space EMBARQ Brasil. DOTS Cidades - Manual de Desenvolvimento Urbano Orientado ao Transporte Sustentável. November 2014. Accessed August 23, 2016. http://wricidades.org/research/publication/dots-cidades-manual-de-desenvolvimento-urbano-orientadoao-transporte.
History of TOD Image Source: Trikelef. Florence. Photograph. Flickr. April 29, 2009. Accessed November 10, 2016. https://www.flickr.com/photos/trikelef/3608043144/sizes/l. Like many cities in Europe, the city center of Florence, Italy, is dense and walkable.
The Case for TOD London New York Image Source: LSE Cities. Bangalore: 60% jobs within 60 mins
ADAPTATION of TRANSIT ORIENTED DEVELOPMENT INTERNATIONAL PRACTICES
Objectives for TOD ECONOMIC Guide urban growth and new real estate development Spur economic growth Support local economic development and revitalization SOCIAL Enhance equity along the corridor Increase accessibility and mobility for low-income households Reduce road accidents ENVIRONMENTAL Reduce energy consumption and GHG emissions Reduce air pollution Preserve green space
The North American Model: High Density, Mixed Use around Transit (focused Image Courtesy: Reconnecting America Flickr Stream on better productivity)
The European Model: Mid Density, Mixed Use around public spaces connected with Transit, Biking and Pedestrian facilities (focused Image Courtsey: Amsterdamized, Flickr Stream on better livability).
The South American Model: High Density corridors connecting parts of the city (focus on Integrate land use and transport).
The Asian Model: Codevelopment model to begin with, focused on leveraging real estate around transit to create Image Courtesy: Design for Health, Flickr stream funds for development.
SCALES OF TOD INTERNATIONAL PRACTICES
SCALES OF TOD: REGIONAL/CITY LEVEL Boston, Massachusetts' Fairmount Indigo Railway Corridor
SCALES OF TOD: CORRIDOR LEVEL Boston, Massachusetts' planned Fairmount Indigo Railway Corridor
SCALES OF TOD: CORRIDOR LEVEL TOD corridors serve as the backbone of the city, shaping its network and spatial structure Promote communities longterm goals Offer a variety of land uses Provide community destinations Incorporate community input The city of Ahmedabad, India s BRT system Image Source: Ahmedabad BRTS. Illustration. Wikimedia Commons. February 12, 2010. Accessed September 6, 2016. https://commons.wikimedia.org/wiki/file:ahmedabad_brts_network_map.png. Source: Michaelson, Juliette, Gary Toth, and Renee Espiau. Project for Public Spaces, Inc. Great Corridors, Great Communities. Project for Public Spaces, Inc. 2008. Accessed September 6, 2016. http://www.pps.org/pdf/bookstore/great_corridors_great_communities.pdf.
SCALES OF TOD: STATION AREA LEVEL Image Source: Mariordo59. Transmilenio, Bogota, Colombia. Photograph. Flickr. August 15, 2011. Accessed November 10, 2016. https://www.flickr.com/photos/30998987@n03/8434094610/sizes/l. The station area around a bus rapid transit stop in Bogotá, Colombia
TOD CASE EXAMPLES INTERNATIONAL PRACTICES
PORTLAND, U.S.A. Transit in Portland, Oregon Image Source: Oregon Metro. "Strategic Plan: Transit-Oriented Development Program." June 2016. http://www.oregonmetro.gov/sites/default/files/strategic%20plan_executive%20summary-2016-062816.pdf.
A PLAN FOR SURABAYA, INDONESIA Image Source: Surabaya Urban Corridor Development Strategy, Indonesia. Hansen Partnership and City Form Lab. http://www.hansenpartnership.com.au/projects/urbandesign/surabaya/.
SINGAPORE Image Source: Suzuki, Hiroaki, Robert Cervero, and Kanako Iuchi. Transforming Cities with Transit. Washington DC, USA: The World Bank, 2013. Singapore Land Transport Authority 2008. Reproduced with permission
JOHANNESBURG, SOUTH AFRICA Image Source: Enoch Lehung. Empire Perth Development Corridor. City of Joburg, Johannesburg Development Agency. http://cidforum.co.za/files/empire_perth_saf_final_draft.pdf.
ADDRESSING LAND INTERNATIONAL PRACTICES
Land: the foundational building block for TOD Land is often the most valuable asset a city possesses to leverage TOD Many funding and financing tools can be used to harness land assets Given the variety of land-ownership regimes, diverse tools and cooperation between entities is key to assemble land for TOD Corridor projects
Land related tools Image Source: Amirtahmasebi, R., Orloff, Wahba, and Altman. Regenerating Urban Land: A Practitioner s Guide to Leveraging Private Investment. 2016. Urban Development Series. Washington, DC: World Bank.
Land readjustment scheme Ahmedabad- Town Planning Scheme + Land Pooling Image Source: Hisham El. Shimy. Sustainable Development of the Slum Areas in Using Readjustment Planning System: Aljama Slum Area as Case Study. 2012. Architecture Research. 2012. 2(5): 68-80.
FINANCING TOD INTERNATIONAL PRACTICES
The Business Model Framework How to mobilize investment capital? What to invest in? TOD INVESTMENTS How to structure implementation? How to pay for it?
Portland: Delivery Mechanisms + TIF Three types of delivery mechanisms used for a TOD investment: Contracts: contracts that determine how the revenues and costs arising from the investment components are distributed Legal entities & structures: Legal entities dedicated to the implementation of a TOD investment Institutional frameworks: Laws and institutional arrangements that set enabling conditions for TOD investments to take place The TOD area known as the Pearl District in Portland, U.S.A. Image Source: Decaseconds. Sunset in the Pearl District. Photograph. Flickr. August 15, 2014. Accessed November 16, 2016. https://www.flickr.com/photos/decaseconds/14813718908/sizes/l.
Colombia: Service Charges Plaza Alfonso López, Manizales, Colombia: a TOD project that utilized betterment levies to enable investment Image Source: Martha Rivero. Picture 613. Photograph. Flickr. February 12, 2010. Accessed November 18, 2016. https://www.flickr.com/photos/soy_de_cali_ve/4368640057/sizes/l. Service charges: revenues obtained from charges applied to the use of transit services and from charges related to real estate assets Farebox revenues Real estate leasing Betterment levies 51
Hong Kong: Rail + Property Kowloon Station, Hong Kong: a TOD project where stakeholders utilized post-rail land value capture Image Source: Buildings on Kowloon Station. Photograph. Wikimedia Commons. May 22, 2016. Accessed November 17, 2016. https://commons.wikimedia.org/wiki/file:buildings_on_kowloon_station.jpg. Land value increments: revenues gained through land value capture, a technique in which a public authority harnesses increased land value derived from public action or investment Land value capture can be carried out through such public delivery mechanisms as: Upzoning, Land readjustment, Special assessment tax, Land sale at post-rail prices
Sao Paulo: Air rights Faria Lima District, Sâo Paulo, Brazil: a TOD project in which urban authorities mobilized funding through the auction of development rights Image Source: Alexandre Nascimento. 06.11.09.Nov 002. Photograph. Flickr. November 6, 2009. Accessed November 16, 2016. https://www.flickr.com/photos/2772/4081089663/sizes/l. Source:Maleronkaand Piers2013, Sale of air rights: transfer or sale of development rights through the auctioning of development rights. In Sao Paulo, the difference between the basic FAR and the maximum FAR is sold through The auctioning. Authorities can also provide density bonuses (FAR increase beyond the zoning code
The business model framework Tangible Assets Intangible Assets Processes Equity Debt De-risking products Investment revenues Investment incentives Own source revenue Institutional frameworks Legal entities & structures Contracts
TOD GOVERNANCE INTERNATIONAL PRACTICES
TOD IMPLEMENTATION PROJECT CYCLE Image Source: Carlton, I. and Fleissig, W. Steps to Avoid Stalled Equitable TOD Projects Living Cities. April 2014. Image Source: WRI.
Portland TOD Governance State of Oregon Regional Agencies Metro (Metropolitan planning agency) Tri-Met (Regional transit agency) Funding between agencies Urban Growth Boundary (UGB), 1979 Transportation Planning Rule, 1991 followed by 2040 Growth Concept Transportation & Growth Management Program, 1993 TOD Tax Exemption, 1995 Regional Growth Management, 1994 TOD Implementation Program, 1998 Metropolitan Transportation Improvement Program Westside Station-Area Planning, 1993 1997 Joint Development, 1997 TOD Tax and Fee Exemptions
INCLUSIVE TOD INTERNATIONAL PRACTICES
Housing Production: Land Acquisition, Diverse Zoning for Affordable Housing Public land dedication and write-downs Joint public-private developments Land banking Land readjustment Overlay zones- diverse zoning, including rentals Public housing in Singapore Image Source: Yeowatzup. Public Housing & MRT, Commonwealth, Singapore. Photograph. Flickr. April 3, 2009. Accessed November 14, 2016. https://www.flickr.com/photos/yeowatzup/3410344505/sizes/l.
Connecting housing to opportunities: Medellin, Colombia Social urbanism connected low-income neighborhoods, regularized informal settlements, and provided high quality services and public facilities such as libraries around improved transport facilities such as escalators and cable cars. Elizabeth Press. Metrocable. Photograph. Flickr. January 11, 2012. Accessed November 11, 2012. https://www.flickr.com/photos/pressdecode/6696255247/sizes/l.
ADAPTING TRANSIT ORIENTED DEVELOPMENT LESSONS FROM THE FIELD
TOD: Lessons From the Field Political economy Political leadership and vision for the city Appropriate institutional structures Community participation Intergovernmental and metropolitan collaboration
TOD: Lessons From the Field Planning and Regulation Holistic and integrated approach (LU+T) Supportive regulatory environment Finance Leverage capital Use a combination of financing options Use public sector investment to encourage private sector investment Stakeholders must have shared vision
TOD: Lessons from the Field Implementation Create democratic, transparent, and fair processes Create new spatial identities through placemaking strategies Allow for adjustments over long-term market cycles Limited transit network diminishes TOD appeal Limit gentrification through increased access to low-income housing
The opportunity Game-changing solutions are out there Managing Urban Expansion Transit-oriented development Improve Energy Efficiency Smart, efficient buildings Addressing congestion Mass Transit, Bike sharing systems and other low impact modes But solutions need improving, scaling and adapting for maximum impact: Extending the coverage of mobility, energy, and other services to underserved areas Diversifying options for greater choice and accountability, and adapting to local context. Source: UTTIPEC, DDA, WRI India) Photo credit: Anne Maassen
Thank You Jaya Dhindaw Director- Urban Development World Resources Institute, India www.wri.org